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Acquisitions, Discontinued Operations, and Other Dispositions | 12 Months Ended
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Dec. 31, 2018
Business Combinations And Discontinued Operations [Abstract] |
Acquisitions, Discontinued Operations, and Other Dispositions | Acquisitions, Discontinued Operations, and Other Dispositions Acquisition of Cues As indicated in Note 1, on June 7, 2018, we completed the acquisition of Cues for $164.4, net of cash acquired of $20.6. We financed the acquisition with available cash and borrowings under our senior credit and trade receivables financing arrangements. The assets acquired and liabilities assumed have been recorded at estimates of fair value as determined by management, based on information available and on assumptions as to future operations and are subject to change based on the final assessment and valuation of certain income tax amounts. The following is a summary of the recorded fair values of the assets acquired and liabilities assumed for Cues as of June 7, 2018:
Assets acquired: |  |
Current assets, including cash and equivalents of $20.6 |  | $ | 70.4 |
Property, plant and equipment |  | 7.4 |
Goodwill |  | 48.6 |
Intangible assets |  | 79.5 |
Other assets |  | 2.3 |
Total assets acquired |  | 208.2 |
Current liabilities assumed |  | 7.8 |
Non-current liabilities assumed |  | 15.4 |
Net assets acquired |  | $ | 185.0 |
The identifiable intangible assets acquired consist of a trademark, customer backlog, customer relationships, and technology of $27.6, $0.8, $42.6, and $8.5, respectively, with such amounts based on an assessment of the related fair values. We expect to amortize the customer backlog, customer relationships, and technology assets over 0.5, 12.0, and 11.0 years, respectively. We acquired gross receivables of $13.6, which had a fair value at the acquisition date of $13.2 based on our estimates of cash flows expected to be recovered. The qualitative factors that comprise the recorded goodwill include expected synergies from combining our existing inspection equipment operations with those of Cues, expected market growth for Cues’ existing operations, and various other factors. We expect none of this goodwill or the intangible assets described above to be deductible for tax purposes. For the period June 7, 2018 to December 31, 2018, Cues recognized revenues and a net loss of $52.3 and $0.4, respectively with the net loss impacted by charges of $4.3 associated with the excess fair value (over historical cost) of inventory acquired which has been subsequently sold. During the year ended December 31, 2018, we incurred acquisition related costs for Cues of $2.4, which have been recorded to “Selling, general and administrative” within the accompanying consolidated statement of operations. The following unaudited pro forma information presents our consolidated results of operations for the years ended December 31, 2018 and 2017 as if the acquisition of Cues had taken place on January 1, 2017. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations that would have been reported had the acquisition been completed as of the date presented, and should not be taken as representative of our future consolidated results of operations. The pro forma results include estimates and assumptions that management believes are reasonable; however, these results do not include any anticipated cost savings or expenses of the planned integration of Cues. These pro forma results of operations have been prepared for comparative purposes only and include additional interest expense on the borrowings required to finance the acquisition, additional depreciation and amortization expense associated with fair value adjustments to the acquired property, plant and equipment and intangible assets, the removal of charges associated with the excess fair value (over historical cost) of inventory acquired and subsequently sold, the removal of professional fees and other one-time costs incurred in connection with the transaction, and the related income tax effects.
|  | Years ended December 31,
|  | 2018 |  | 2017
Revenues |  | $ | 1,572.7 |  |  | $ | 1,511.4 |
Income from continuing operations |  | 87.1 |  |  | 87.4 |
Net income |  | 90.1 |  |  | 92.7 |
Income from continuing operations per share of common stock: |  |  |  |
Basic |  | $ | 2.02 |  |  | $ | 2.06 |
Diluted |  | $ | 1.95 |  |  | $ | 1.99 |
Net income per share of common stock: |  |  |  |
Basic |  | $ | 2.09 |  |  | $ | 2.19 |
Diluted |  | $ | 2.02 |  |  | $ | 2.11 |
Acquisition of Schonstedt As indicated in Note 1, on March 1, 2018, we completed the acquisition of Schonstedt for $16.4, net of cash acquired of $0.3. The pro forma effects of the Schonstedt acquisition are not material to our consolidated results of operations. Sale of Balcke Dürr Business As indicated in Note 1, on December 30, 2016, we completed the sale of Balcke Dürr for cash proceeds of less than $0.1. In addition, we left $21.1 of cash in Balcke Dürr at the time of the sale. In connection with the sale, we recorded a net loss of $78.6 to “Gain (loss) on disposition of discontinued operations, net of tax” during the fourth quarter of 2016. The purchase agreement provides that existing parent company guarantees and bank and surety bonds, which totaled approximately Euro 79.0 and Euro 79.0, respectively, at the time of sale (and Euro 31.7 and Euro 21.8, respectively, at December 31, 2018), will remain in place through each instrument’s expiration date, with such expiration dates occurring through 2022. Balcke Dürr and the Buyer have provided us an indemnity in the event that any of the bonds are called. Also, at the time of sale, Balcke Dürr provided cash collateral of Euro 4.0 and mutares AG provided a guarantee of Euro 5.0 as a security for the above indemnifications (Euro 3.0 and Euro 5.0, respectively, at December 31, 2018). The net loss recorded at the time of the sale of $78.6 includes a charge of $5.1 associated with the estimated fair value of the guarantees and bonds, after consideration of the indemnifications provided in the event any of the bonds are called. See Note 16 for further details regarding the estimated fair value of these guarantees and bonds. As indicated in Note 1, the results of Balcke Dürr are presented as a discontinued operation within the accompanying consolidated financial statements. Major classes of line items constituting pre-tax loss and after-tax loss of Balcke Dürr for the year ended December 31, 2016 are shown below:
Revenues | $ | 153.4 |
Costs and expenses: |
Costs of products sold | 144.2 |
Selling, general and administrative | 31.4 |
Special charges (credits), net | (1.3 | )
Other expense, net | (0.2 | )
Loss before taxes | (21.1 | )
Income tax benefit | 4.5 |
Loss from discontinued operations | $ | (16.6 | )
The following table presents selected financial information for Balcke Dürr that is included within discontinued operations in the consolidated statement of cash flows for the year ended December 31, 2016:
Non-cash items included in income (loss) from discontinued operations, net of tax |
Depreciation and amortization | $ | 2.0 |
Capital expenditures | 0.7 |
During 2017, we reduced the net loss associated with the sale of Balcke Dürr by $6.8. The reduction was comprised of an additional income tax benefit recorded for the sale of $9.4, partially offset by the impact of adjustments to liabilities retained in connection with the sale and certain other adjustments. During the second quarter of 2018, we reached a settlement with the Buyer on the amount of cash and working capital at the closing date, as well as on various other matters, for a net payment from the Buyer in the amount of Euro 3.0. The settlement resulted in a gain, net of tax, of $3.8, which was recorded to “Gain (loss) on disposition of discontinued operations, net of tax” during the second quarter of 2018. Other Discontinued Operations Activity In addition to the businesses discussed above, we recognized net losses of $0.8, $1.5 and $2.7 during 2018, 2017 and 2016, respectively, resulting from adjustments to gains/losses on dispositions of businesses discontinued prior to 2016. Changes in estimates associated with liabilities retained in connection with a business divestiture (e.g., income taxes) may occur. As a result, it is possible that the resulting gains/losses on these and other previous divestitures may be materially adjusted in subsequent periods. For the years ended December 31, 2018, 2017 and 2016, results of operations from our businesses reported as discontinued operations were as follows:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
Balcke Dürr |  |  |  |  |
Income (loss) from discontinued operations | $ | 6.3 |  |  | $ | (2.6 | ) |  | $ | (107.0 | )
Income tax (provision) benefit | (2.5 | ) |  | 9.4 |  |  | 11.8 |
Income (loss) from discontinued operations, net | 3.8 |  |  | 6.8 |  |  | (95.2 | )
All other |  |  |  |  |
Loss from discontinued operations | (1.2 | ) |  | (4.0 | ) |  | (3.7 | )
Income tax benefit | 0.4 |  |  | 2.5 |  |  | 1.0 |
Loss from discontinued operations, net | (0.8 | ) |  | (1.5 | ) |  | (2.7 | )
Total |  |  |  |  |
Income (loss) from discontinued operations | 5.1 |  |  | (6.6 | ) |  | (110.7 | )
Income tax (provision) benefit | (2.1 | ) |  | 11.9 |  |  | 12.8 |
Income (loss) from discontinued operations, net | $ | 3.0 |  |  | $ | 5.3 |  |  | $ | (97.9 | )
Other Dispositions As indicated in Note 1, on March 30, 2016, we completed the sale of our dry cooling business for cash proceeds of $47.6 (net of cash transferred with the business of $3.0). In connection with the sale, we recorded a gain of $18.4. The gain includes a reclassification from “Equity” of other comprehensive income of $40.4 related to foreign currency translation.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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